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In: Finance
Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time...
Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time and attention on the U.S. dollar/Singapore dollar ($/S$) cross-rate. The current spot rate is $0.6000/S$. After considerable study, she has concluded that the Singapore dollar will appreciate versus the U.S. dollar in the coming 90 days, probably to about $0.7000/S$. She has the following options on the Singapore dollar to choose from: Option Strike Price Premium Put on Sing $ $0.6500/S$ $0.00003/S$ Call on Sing $ $0.6500/S$ $0.00046/S$ 11.If the exchange rate is $0.7000/S$ at expiration, what is the profit (loss with negative sign) in $/S$ to buy an European Singapore dollar put? a. 0.0495 b. 0.04997 c. 0.05003 d. -0.05046 e. -0.00003 f. -0.00046 g. +0.00003 h. -0.0495 If the exchange rate is $0.7000/S$ at expiration, what is the profit (loss is negative) in $/S$ to sell an European dollar call? a. 0.04954 b. 0.04997 c. 0.05003 d. -0.05046 e. -0.00003 f. -0.00046 g. +0.00003 h. -0.04954
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jeff jeffy answered 2 years agoRelated Solutions
Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time...
Sallie Schnudel trades currencies for Keystone Funds in
Jakarta. She focuses nearly all of her time and attention on the
U.S. dollar/Singapore dollar ($/S$) cross-rate. The current spot
rate is $0.6000/S$. After considerable study, she has concluded
that the Singapore dollar will appreciate versus the U.S. dollar in
the coming 90 days, probably to about $0.7000/S$. She has the
following options on the Singapore dollar to choose
from:
Option Strike
Price Premium
Put on Sing
$ $0.6500/S$ $0.00003/S$
Call on Sing
$ $0.6500/S$ $0.00046/S$
11.If...
Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time...
Sallie Schnudel trades currencies for Keystone Funds in Jakarta.
She focuses nearly all of her time and attention on the U.S.
dollar/Singapore dollar ($/S$) cross-rate. The current spot rate is
$0.6000/S$. After considerable study, she has concluded that the
Singapore dollar will appreciate versus the U.S. dollar in the
coming 90 days, probably to about $0.7000/S$. She has the following
options on the Singapore dollar to choose from: Option Strike Price
Premium Put on Sing $ $0.6500/S$ $0.00003/S$ Call on...
Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time...
Sallie Schnudel trades currencies for Keystone Funds in
Jakarta. She focuses nearly all of her time and attention on the
U.S. dollar/Singapore dollar ($/S$) cross-rate. The current spot
rate is $0.6000/S$. After considerable study, she has concluded
that the Singapore dollar will appreciate versus the U.S. dollar in
the coming 90 days, probably to about $0.7000/S$. She has the
following options on the Singapore dollar to choose
from:
Option Strike
Price Premium
Put on Sing
$ $0.6500/S$ $0.00003/S$
Call on Sing
$ $0.6500/S$ $0.00046/S$
11.If...
Cece Cao trades currencies for Sumatra Funds in Jakarta. She focuses nearly all of her time...
Cece Cao trades currencies for Sumatra Funds in Jakarta. She
focuses nearly all of her time and attention on the U.S.
dollar/Singapore dollar ($/S$) cross rate. The current spot rate is
$0.6000/S$. After considerable study, she has concluded that the
Singapore dollar will appreciate versus the U.S. dollar in the
coming 90 days, probably to about $0.7000/S$. She has the following
options on the Singapore dollar to choose from:
Option
Strike Price
Premium
Put (US$/S$)
0.6500
0.00003
Call (US$/S$)
0.6500...
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